FX.co ★ Elliott wave analysis of EUR/JPY for October 29, 2020

Risk-off sentiment dominated the financial markets yesterday after many European countires announced new lock-downs in their efforts to curb the spread of the coronavirus. EUR weakened amid such news while JPY gained momentum, which clearly was seen in yesterdays price-action. EUR/JPY broke key-support at 123.38 and declined to a low of 122.15 which is the 61.8% corrective target of wave 1/. The low of wave 2/ and be the tne very early stages of a new stong impulsive rally in wave 3/ towards 129.86.

A retest and maybe even a slight break below support at 122.15 can't be excluded before wave 2/ finally completes and wave 3/ is ready to take over.

R3: 123.49

R2: 123.17

R1: 122.89

Pivot: 122.64

S1: 122.48

S2: 122.25

S3: 122.15

Trading recommendation:

We will buy EUR at 122.25 or upon a break above 122.95. If our buy order at 122.25 is filled, we will place our stop at 121.75.